Communication equipment industry in China into Europe

Source：    Public date:2022-12-05 9:38:37

Industrial Control Abstract: In recent years, some Western countries to China's manufacturing industry, especially to the telecommunications equipment industry doubly obstruction, dumping, military background, threat to national security and other reasons emerge in an endless stream. Recently, media reported that the EU would impose punitive tariffs on ZTE and Huawei, and EU Trade Commissioner KarelDeGucht was kind enough to make a proposal: Giving EU suppliers a 30 per cent share of the telecoms market and Huawei and ZTE raising the prices of their EU exports by 29 per cent in return for dropping a highly controversial investigation into Chinese companies.

Although the development of telecommunications equipment is in a downturn period, some western enterprises do not reflect deeply on their own shortcomings, but use political means to cover up their own shortcomings, hinder the free market competition, and lay a hidden danger for the healthy development of the market. The strong rise of Chinese telecom equipment manufacturers has become a fact. In the face of obstacles in overseas markets, Chinese equipment manufacturers have accelerated the pace of innovation and fought back through various innovative technologies and patents, which has been praised by the industry.

Market "seizure", free trade empty talk?

Recently, a news about the European Union will again launch an investigation into Chinese equipment manufacturers has aroused wide attention from all walks of life. Ironically, domestic firms would have to give up 30% of the domestic market and then raise their prices by 29% to get them to drop the investigation. Under the market economy, such a "replacement market" should happen, it is difficult to understand why it would say such unwise remarks.

Industry insiders say there are plenty of doubts about the commission's claims of cheap dumping, but the trade commissioner's comments come at a time when the evidence is thin. It knows 4G is on the way, and sluggish European manufacturers will no doubt want a piece of the action.

Free trade has always been advocated and upheld by the EU as the concept of market economy. However, frequent trade investigations will undoubtedly hinder the smooth progress of free trade, and acts that destroy market order will cause considerable damage to the interests of both sides. At present, in order to win in the market, the government as the manager should give more freedom to the market, and the enterprise also needs to support with its own culture and spirit. Such a clear thing, some "smart people" become confused, on the wrong way. In this light, Mr De Gucht's demand that China cede 30 per cent of the market is clearly laughable.

In December 2012, internal EU documents accused ZTE and Huawei of being subsidized by the Chinese government to dump wireless network equipment in Europe at 35 percent below market prices. In 2010, the EU launched two anti-dumping and safeguard investigations into Chinese data cards... For various investigations, the relevant departments of the state repeatedly expressed dissatisfaction with this, our telecom equipment manufacturers have actively responded, giving denial at the same time also produced relevant materials to prove.

Multiple factors lead to the existing layout

It makes you wonder why countries that advocate free trade are so aware of the dangers, but you also smile when you think about it.

Huawei reported sales of $35 billion in 2012, and its communications equipment is purchased by more than 140 countries. Huawei now makes communications equipment that makes one-third of the world's population "intimately connected." Huawei employs 140,000 people worldwide, half of whom are engineers. In addition, Huawei ranks among the top 20 companies in the world in the number of patent applications.